March 23, 2007 — (WEB HOST INDUSTRY REVIEW) — Search engine giant Google (google.com) announced Tuesday that it has started beta testing its pay-per-action advertising affiliate program with both advertisers and publishers. With its already massive existing base of pay-per-click advertisers, many anticipate Google to rapidly become a disruptive player in PPA.
PPA affiliate programs, which offer a fee for customer referrals from third-party Web sites, have become more prominent in the past year as more Web hosts have started referral networks. PPA programs differ from PPC programs in that it only offers a pay out when a customer signs up for a hosting account, whereas with PPA, advertisers are charged a fee each time a visitor clicks through to their site.
The strong competition for customers can be seen in the high payouts for affiliate conversions, with at least 10 hosting companies currently offering between $100 and $150 per referral at affiliate programs management provider Commission Junction. Those fees are typically offered when a customer signs up and pre-pays for a term of at least one year.
Some Web hosts have accused Google’s AdWords of employing a “click inflation” strategy as reasons for shifting its focus to affiliate marketing, where each payout produces a customer instead of a Web site visitor. However, industry experts say it is too early to project whether a similar pattern would occur for Google’s PPA program.
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